Wednesday, January 11, 2012

Are name of investment schemes important while selecting investment option?

It is not unusual to find names such,' Child Protection Plans' or ,' Pension Maximiser Plan' in the world of investment. Why such names are used  by investment companies? The question that comes to my mind is after all what is there in the name? Are names so important? Yes, they indeed are in the world of investment and that is the reason many investment houses use catchy names. As investors, they catch our attention and we are lured to invest in such schemes. No wonder schemes with catchy names always float in the market. It is important to note that investment schemes with specific names may not be the best investment options. So while making investments, always look at the following aspects:

1) Select invest schemes based on investment goals and not by names.

2) Pension plans may not be the best option for pension. Building corpus is more important than buying a pension plan

3) Look at performance of the scheme while selecting a scheme for investment. This means that a gold plan will be best investment option for retirement and not a pension plan

4) Last not the least, look at risks in investment schemes. Risk and return should always be weighed before any scheme is selected and not just name.

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